A Research Of Other Receivables Financial Fraud Issues And Governance

Financial fraud is a behavior leading to accounting information distortion, that the doers want to obtain illegitimate interests for the purpose, violate the authenticity principle in a planned targeted purposeful and intentional way, and violate state laws, regulations, policies, rules and guidelines. In recent years our country occurs a lot of companies’financial reporting fraud incidents, such as Qiong min yuan, PT Hong guang, Dong fang boiler, Da qing lian yi, Zheng bai wen, Yin guang xia, and recent Grreen earth, Wan fu sheng ke. Corporate financial reporting fraud in China caused an unprecedented credit crisis, and Credit foundation the securities market relies for and the "public", the principle of "fairness" and "justice" are being challenged. And which makes a great impact on the securities market to exert the basic function of optimizing the allocation of resources and also causes great damage to our country economic life.The accounting content of "Other receivables" is quite complex, which often become a tool for company’s financial fraud. Many companies use the characteristics of "other receivables" to hide the abnormal trading behavior, in order to whitewash financial statements and sending money to related parties and so on. The case of using "other receivables" for financial fraud is very common. This kind of serious financial fraud and false accounting information deceive information users, threaten the development of capital market, and cause adverse effects on the social and economic development. So the study of financial fraud related problems, especially for the behavior of using "other receivables" for financial fraud, and finding a way to governance inhibition of financial fraud effectively is an urgent affair. In this paper, the research combines the normative study and case analysis methods and uses charts as a research tool to study the "other receivables" financial fraud problems of our company from two aspects of basic theory and practical cases:Chapter1:introduction, including five aspects, such as the research background, the research significance, the research ideas and framework, the research methods and the main contributions and shortcomings. This chapter expounds the related problems of the financial fraud, and emphasizes the important practical significance of the study of "other receivables" financial fraud.Chapter2:literature review. This chapter summarizes four aspects of domestic and foreign literature, in regard to the financial fraud motivation, the means, the identification and the governance. And this chapter also reviews the research results about the problem of financial fraud of the domestic and foreign experts and scholarsChapter3:the theoretical analysis of financial fraud. This chapter firstly makes a detailed elaboration on the concept and characteristics of financial fraud, clears about the definition of financial fraud, points out a few big characteristics of financial fraud, such as the information losing true, deliberate persistence, concealment, dynamic nature, illegality, and the majority of financial statement fraud having the participation of senior executives.Then the chapter summarizes several kinds of commonly used financial fraud means, such as fictitious assets and fictitious economic business, inappropriate affirming income, fictitious profits, cost fraud and using related party transactions to whitewash statements. Then the chapter analyzes the danger of financial fraud to stakeholders, the company’s development, the securities market function, the credit of accounting industry and the macro-economic order. Finally the chapter proposed the identification method and management advice of financial fraud.Chapter4:the content, rules regulations, fraud, methods and effect of the "other receivables". This chapter is the focus of this article, focusing on the detailed comprehensive analysis of relevant content of "other receivables". First of all, this chapter explains on the concept of "other receivables" and puts forward on the importance of the management of "other receivables". Secondly this chapter summarizes the relevant standards of "other receivables", and based on this analyzes the causes of "other receivables" financial fraud. Then, this chapter emphatically cites7means of "other receivables" financial fraud, such as the "other receivables" account payment for a long time; By putting the cost into "other receivables" to increase the profits; Using "other receivables" to sped up the accounts receivable turnover; Using the "other receivables" for tax evasion; Hiding the short-term investments and intercepting retained earnings; Using the "other receivables" transfer to obtain funds, and adjusting operating activities cash flow; and using "other receivables" for party transactions, so that large shareholders can free possess company funds.Chapter5:the case analysis of "A company" using "other receivables" for financial fraud. This chapter makes "A company" as a typical example of using "other receivables" for financial fraud and makes a detailed case analysis. To be more intuitive and objective, the writer collects a large number of detailed data to illustrate the reasons, means and influence of the company using "other receivables" for financial fraud.Chapter6:the identification methods and countermeasures of using "other receivables" for financial fraud. Based on the above analysis, this chapter provides the methods and countermeasures of using "other receivables" for financial fraud. Specific identification methods are:verifying all kinds of notes of the "other receivables"; Focusing on the amount of all kinds of loans; and paying attention to the longer construction period, and the larger one-time loan amount. Specific countermeasures are:strengthening and perfecting the internal supervision system; improving the management system of "other receivables" and Deposit internal management system; strengthening and improving the external supervision system; enhancing the legal awareness, professional ethics of stakeholders; and paying attention to strengthening the construction of moral integrity.The main contribution of this paper is:based on China’s national conditions, through the review and research of the contents and the theory of the financial fraud and focusing on the company’s behavior of using "other receivables" for financial fraud, thus summarizing the governance and the related countermeasure of fraud. Specifically:(1) this paper emphasis on the use of "other receivables" for fraud and studies its content, means of rules regulations, fraud causes, methods and influence. Based on these, the writer provides the corresponding recognition methods and countermeasures.(2) This paper makes "A company" as a typical example of using "other receivables" for financial fraud and makes a detailed case analysis, and illustrate the reasons, means and influence of the company using "other receivables" for financial fraud in a more intuitive and objective way.The deficiency of this paper lies in:only through one typical case to illustrate the causes, means and effects of the use of other receivables for financial fraud. The situation of the involved is not comprehensive enough and the problem explained is not deep enough.